Aerospace stock Boeing (BA) took a step forward today that some might not have seen coming. While we have heard about carbon purchases from some industries before, Boeing is usually not a name that comes up in that conversation. That changed recently as Boeing bought a supply of carbon removal services via biochar and enhanced rock weathering. The news was not especially welcome among shareholders, who sent shares notching down fractionally in Friday’s trading.
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Boeing picked up 20,000 tons of “durable carbon dioxide removal” from a company called Supercritical, which in turn turned to several carbon removal operations from Brazil to Bolivia and beyond. This is part of a larger strategy about handling carbon at Boeing, which starts with avoiding the production of carbon and removing carbon second.
Boeing’s vice president of global enterprise sustainability Allison Melia noted, “We’re committed to supporting the responsible growth of our industry and high-integrity carbon removal is key to cutting net emissions as global air travel demand continues to rise. Our work with Supercritical supports that goal by expanding access to high-quality, diversified, science-vetted carbon removal credits.”
Not Quite True
A separate report, meanwhile, tackled a bit of a myth in the large-scale cargo aircraft field. Specifically, the myth was that the C-17 Globemaster is powered by multiple Boeing 757 engines. Like a lot of things in life, the idea is true, but only in part.
The Globemaster is actually powered by four Pratt & Whitney F117-PW-100 turbofan engines. That might make you think that Boeing has nothing to do with the Globemaster at all, but that also is not completely true. The F117, the report noted, is based on the PW2040, which is by itself used on some Boeing 757. So a more correct, if somewhat persnickety, way to phrase it is that the C-17 Globemaster is powered by four Pratt & Whitney engines which were based on engines that have seen use on the Boeing 757.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 23.49% rally in its share price over the past year, the average BA price target of $274.27 per share implies 19.86% upside potential.
